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In Today’s Issue:
Intro to the Guest and Topic
Core Takeaway
Episode References
Select Quotes
Key Moments
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Today’s Topic & Guest:
Zach Scardino | Scardino Strategic Partners
In today’s episode we discuss, how to buy a business — the Catholic way.
To do this, we enlisted our friend (and Guild Member) Zach Scardino. An expert in buy-side consulting and business acquisitions at Scardino Strategic Partners.
We have encountered a lot of people who want to buy an existing business rather than build one. It sounds appealing, but going in blind is a recipe for disaster.
Zach breaks down exactly how to build an acquisition thesis, run a coherence test on yourself, and source the best off-market deals (among many other things).
Core Lesson:
You are merging into their lane, not the other way around.
~80% of acquired businesses fail within five years because buyers forget there is a lot of work to do after the purchase. There is also a way to do it well, and a way to not. When you buy a business, don’t just kick down the door and start swinging a bat. Take the first 90 days to learn, observe, and secure the key relationships that made the business valuable in the first place. Maintain the continuity of service, respect the previous owner’s legacy, and integrate yourself into the culture with charity.
God Bless & Happy Building!
~Silas Mähner
Hire Catholic Overseas Talent
In LatAm and the Philippines, there are millions of Catholic remote workers (across all domains) who want to work for ethical bosses.
Often, they’re treated as second-class citizens or work for organizations that ask them to do questionable things. They reach out to us in search of a Catholic boss.
So, we started ParacleteVA (website coming soon).
With ParacleteVA, we’ll find you vetted, Catholic overseas talent who will help you move your business forward.
How it works: Pay a $500 finders fee when the candidate starts and $500 if you’re still happy with them after 30 days.
To get started, reach out to catholicfounders@gmail.com with what you’re looking for, and we’ll get started.
Key Episode References:
Famous & Historical Figures
Bible Passages
Select Quotes:
“One of the temptations when somebody acquires a business is to come in and start fixing things. that’s a bad approach. you don’t want to come in swinging the bat.” - Zach Scardino
“You’re you’re basically doing a SWOT analysis on yourself before you even start looking at the business.”- Zach Scardino
“People think that it’s like this sexy kind of just very suave thing. This is hard work. And if somebody tells you that this is easy, then they’re doing it wrong.” - Zach Scardino
“I’m gonna go ahead and say no business runs itself.” - Zach Scardino
“I’ll say that that coherence test is unfortunately something that is usually skipped when people do a DIY, and anybody who’s looking to do a DIY, don’t skip that coherence test because that is probably the most common point of failure.” - Zach Scardino
“If you’ve got a business that’s been around forever and revenue has been mostly flat, that’s a red flag.” - Zach Scardino
“Frankly, structuring the deal is very often a bigger part of the final agreement than the price.” - Zach Scardino
“When you have acquired the business, the right way to think about it is that you are merging into their lane.” - Zach Scardino
“It’s better to overestimate your cost exposure to some of this transition than it is to underestimate it.” - Zach Scardino
“We have an advantage if we understand the nature of every human being; dignified and we’re we’re here to create a business to help employ people so that they can provide for their families.” - Silas Mähner
Key Moments: (outline)
(00:00) - Intro: Learning the Catholic way to buy a business.
(00:27) - The Acquisition Thesis: Doing a SWOT analysis on yourself before looking at businesses.
(04:56) - Sourcing Capital: Using cash value life insurance or family wealth with strings attached to fund your deal.
(09:59) - Owner vs. Owner-Operator: Understanding that no business runs itself and identifying your management capacity.
(14:55) - The Coherence Test: Matching business size, financing capability, and your personal income needs.
(18:10) - Finding the Deal: Why off-market direct outreach heavily beats public business broker listings.
(24:35) - Flat Revenue is a Red Flag: Analyzing the dangers of slow attrition in long-standing businesses.
(26:50) - Recasting Financials: Finding true business value by removing owner perks and adding market salaries.
(31:44) - The Walkaway Price: Knowing your absolute maximum price based on cash flow before making an offer.
(38:53) - Structuring the Deal: Using seller notes, earnouts, and dividends to align incentives post-closing.
(45:00) - Merging Into Their Lane: Planning the employee and customer transition before closing the deal.
(53:15) - The 90-Day Rule: Why you shouldn’t make sweeping changes during your first three months as the new owner.
(1:00:20) - Outro: How to get in touch with Zach Scardino for buy-side consulting.
